For a range of economic and political reasons, volatility is at the forefont of investors’ concerns. Although the worst of the pandemic is (hopefully) behind us, share price volatility has been even higher in 2022 than it was in 2021.
The problem with volatility is that it keeps you nervous and fearful of potential losses, even if at the end of the year your actual losses are not as bad as feared. That we feel the pain of actual and potential losses more than the joy of profits is often mentioned in behavioural finance.
So, at times like these, you wish you had some investments in your portfolio that helped to at least partially offset the losses with
